PPAs, or Power Purchase Agreements, have been present in the world for many years, allowing the generation and trading of energy. This is an agreement made directly between a generator of energy from a RES installation and a customer who would like to use that energy. Recently, another possibility has emerged, namely PV as a service agreements . What do they consist of? And what are the obligations of both parties to these agreements?
The currently known PPA consists in the purchase of energy produced by a photovoltaic installation at a fixed price per MWh. In this case, however, the energy consumer is neither the owner nor the lessee of the installation. The situation is different in the case of the recently developed PV as a service agreements, which allow the energy buyer to be at the same time the tenant of the installation.
What is a PV as a service contract?
A PV as a service contract consists of a fixed monthly rental or lease payment, which is calculated based on the estimated volume of energy production from the installation. In return, the tenant (i.e., the entrepreneur) can use the installation.
Who is the tenant of the installation?
The installation that produces energy is owned by our company. On the basis of a PV as a service contract, it is leased to the entrepreneur, so that he can use the energy that is produced by the installation. An entrepreneur who signs a PV as a service contract does not contribute start-up funds, the installation costs are covered by our Company. The tenant's task is to provide space to erect the installation, and later to make it available for any maintenance work. The entrepreneur, during the term of the contract, has the option to buy the installation or terminate the contract.
Who is the lessor of the installation?
The lessor is the owner of the installation that he lends to the lessee. He is first responsible for selecting the power of the system and making the design and obtaining the required permits, and then financing the investment. Once the contract is signed, the Company installs the photovoltaic installation on the tenant's property, and for the duration of this contract it services and maintains the operation of the installation.
What can you gain from a PV as a service agreement?
A PV as a service agreement allows the tenant to use the installation, in return for which he pays the company a base rent, which is a fixed monthly fee. At the end of the calendar year there is a supplementary billing, which involves verifying whether the total MWh of electricity generated is higher or lower than the assumed Productivity.
If it is lower, the Company shall pay the amount of additional settlement to the lessee. When the amount of energy generated is higher than the Assumed Productivity, the Lessee should pay the Company the amount that will arise after the settlement. When the generated energy is equal to the Assumed Productivity, Additional Settlement will not be made.
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